I wonder if Paulson will be limited to assets with some basis in reality. A bank that owns a crappy mortage always has the option of getting the house back. Now it may be a tract home that will be worth 1/3 or the original price.
In a whole nuther category is the highly leveraged shit that has no basis in reality and potentially negative value. A guy I worked with got schnookered into investing into some ridiculous scheme which had ongoing negative impact, and he was stuck dumping more money into a money pit. (This was back in the 80's and had some thing to do with shipping containers. He was stuck paying upkeep or some such thing on a worthless "asset".) I'm sure he would liked dumpingl that investment off on the Feds.
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In a whole nuther category is the highly leveraged shit that has no basis in reality and potentially negative value. A guy I worked with got schnookered into investing into some ridiculous scheme which had ongoing negative impact, and he was stuck dumping more money into a money pit. (This was back in the 80's and had some thing to do with shipping containers. He was stuck paying upkeep or some such thing on a worthless "asset".) I'm sure he would liked dumpingl that investment off on the Feds.
- mark 9-21-2008 1:07 am